1.UNDERSTANDING SERVICES (Contd.

)
D. Services Marketing Mix Product Price Promotion Place People Customers, Employees Physical Evidence Facility Design, Equipments &
Others

Processes

Flow, Number of steps & Customer

involvement

SERVICES MARKETING MIX-THE THREE NEW Ps

(1) People All the human actors, customers and staff who participate in the servuction system and influence each customers perception of and satisfaction with the service. Because of the inseparability issue, front of house staff must interact continuously with their customers. To satisfy these customers staff must process appropriate technical and interpersonal skills. It is often challenging to recruit staff with one of these sets of skills, and it may often be a considerable challenge to find staff comfortable and competent in both areas. These staff are referred to as boundary spanners, or part-time marketers, as they have both operations and marketing responsibilities. Apart from a range of human resource management issues, who manages these staff, operations, marketing or both?

SERVICES MARKETING MIX-THE THREE NEW Ps

(2) Process The steps, procedures, mechanisms, and all activities by which the service is delivered. It is the heart of the delivery and operating systems. (3) Physical Evidence Now referred to as the servicescape, its the environment in which the service is performed, where all customers, staff and company interactivity occurs.

3. UNDERSTANDING THE SERVICES CUSTOMER

A. Customer Choice . Need Recognition Maslows Hierarchy
. Information Search Small Consideration Set . Evaluation of Alternatives Perceived Risk, Self provision of service

. Decision

3. UNDERSTANDING THE SERVICES CUSTOMER (Contd.)

B. Customer Experience Based on the provider

the customer himself

the third party the physical evidence

3. UNDERSTANDING THE SERVICES CUSTOMER (Contd.)

C. Post experience evaluation
Important for predicting subsequent consumer behavior seldom used Word of mouth becomes importantGood experience creates good WOM Dissatisfaction leads to poor WOM- Service recovery strategy needed

Attribution of Dissatisfaction Positive & Negative Biases